Building a Budget Impact Model: Budget Impact Analysis Training

Through presentation and hands-on exercises, participants will learn to design and build a budget impact model and interpret the results. The course will begin with an overview of budget impact analysis and why it is important. Next, good practice guidelines will be discussed and summarized into six basic steps for estimating budget impact: 1) estimating the target population; 2) selecting a time horizon; 3) identifying current and projected treatment mix; 4) estimating current and future drug costs; 5) estimating change in disease-related costs; and 6) estimating and presenting changes in annual budget impact and health outcomes. To illustrate these steps, we will guide participants through the construction of a budget impact model using data sources provided. Participants will develop each component of the budget impact analysis by selecting and entering data into Excel, creating Excel equations to perform calculations, and displaying inputs and results in an appropriate format. Participants will also interpret results, consider critical questions to consider when adapting a budget impact analysis to a specific health plan, and review how these analyses are used by payers and other decision makers.
The course will cover technical topics such as use of static versus dynamic budget impact models and differences between budget impact analyses for drugs and those for device or diagnostic technologies.

Prerequisite: Knowledge and experience using equations and formatting in Excel. VBA experience is not required.

Josephine A. Mauskopf, PhD, MHA, MA

Josephine Mauskopf, PhD, MHA, MA, is Vice President of Health Economics at RTI HS. She has extensive experience both as a consultant and within the pharmaceutical industry designing and implementing pharmacoeconomic research strategies. She has designed pharmaco¬economic research programs for drugs for bacterial infections, viral infections, psychiatric illness, and neurologic diseases. Dr. Mauskopf has estimated budget impacts for new products for schizophrenia, bipolar disease, breast cancer, and HIV infection. She has estimated the cost-effectiveness of antiretroviral drugs, as well as drugs for treating Alzheimers disease, fungal infections, herpes zoster, epilepsy, neonatal respiratory distress syndrome, digoxin toxicity, community-acquired pneumonia, intra-abdominal infections, influenza vaccination, and primary pulmonary hypertension. Dr. Mauskopf also has estimated the impact of an antidepressant on work and social disability. Dr Mauskopf has performed many strategic literature reviews that have been published in peer-reviewed journals, including reviews of cost of care for Alzheimer disease, cost of care for treatment-resistant depression, a review of the methods used to estimate the cost-effectiveness of vaccine programs using dynamic programming models, cost-effectiveness of tiotropium for chronic obstructive pulmonary disease, and treatments for uterine fibroids. Dr. Mauskopf has developed Markov models of disease progression for lung cancer and HIV infection and has developed simulation models of time spent in the operating and recovery rooms and of disease progression for HIV infection.

Dr. Mauskopf was previously Vice President at MEDTAP International, Department Head of Economics Research at Burroughs Wellcome Co., and Director of Pharmacoeconomics Research for Anti-Virals and Anti-Infectives at Glaxo Wellcome Inc. Dr. Mauskopf has completed an 8-year term as Editor-in-Chief of the journal Value in Health. She served for 4 years as a reviewer on the Health Care Technology and Decision Sciences Study Section at the Agency for Healthcare Research and Quality (ARHQ). She is currently serving on the ISPOR Board as a Director. She has presented her research at numerous national and international symposia. She has also published extensively in journals, including Journal of the American Medical Association, Journal of Pediatrics, Journal of Medical Economics, Health Policy, PharmacoEconomics, Value in Health, Medical Care, American Journal of Public Health, Health Services Research, American Journal of Alzheimers Disease and Other Dementias, and Journal of Nutrition, Health, and Aging.

Stephanie R. Earnshaw, PhD, MS

Stephanie Earnshaw is Vice President of Health Economics at RTI Health Solutions (RTI HS). She received her PhD in Industrial Engineering at North Carolina State University and has been with RTI-HS for over 17 years.
She has presented workshops, distance learning, and short courses on decision-analytic modeling techniques for pharmaceutical companies and organizations such as the International Society for Pharmacoeconomics
and Outcomes Research (ISPOR), the Academy of Managed Care Pharmacy (AMCP), and the Centers for Disease Control and Prevention (CDC). Dr. Earnshaw has also held an
adjunct faculty appointment at the University of North Carolina’s Eshelman School of Pharmacy, Division of Pharmaceutical Outcomes and Policy.

Dr. Earnshaw applies mathematical modeling, optimization, and decision-analysis techniques to industry-related issues and health care problems. Her areas of specialization include systems optimization and solving resource allocation problems. She has developed innovative mathematical models to determine pricing strategy and to assess impact to budgets and cost-effectiveness of health technologies in cardiovascular disease, gastrointestinal disorders, chronic obstructive pulmonary disease, transplantation, infectious disease, osteoporosis, and mens health. Mathematical modeling techniques performed include mathematical programming (linear and integer), network optimization, Markov, Monte Carlo simulation, and other state transition models. These analyses have been used to support not only pharmaceuticals, but also diagnostics and medical devices. She is a member of the International Society for Pharmacoeconomics Outcomes Research and the Institute for Operations Research and the Management Sciences. She has presented her work at professional conferences and has published in several peer-reviewed journals.

Anita Brogan, PhD, MS

Anita Brogan is Head of Decision Analytic Modeling within the Health Economics division at RTI Health Solutions (RTI-HS). She holds a PhD in Operations Research from the University of North Carolina and has been with RTI-HS for 13 years. She has presented workshops and short courses on decision-analytic modeling techniques in a variety of venues, including meetings of the International Society for Pharmacoeconomics and Outcomes Research (ISPOR) and the Academy of Managed Care Pharmacy (AMCP). Dr. Brogan has also held an adjunct professorship in the Fermanian School of Business at Point Loma Nazarene University.

In her role at RTI-HS, Dr. Brogan uses analytical techniques to assess and present the clinical and economic value of emerging pharmaceutical and biotechnology products. She leads development of user-friendly and transparent cost-effectiveness, cost-utility, and cost-consequence models; budget-impact models; resource allocation models; and infectious disease transmission models programmed in Microsoft Excel and other platforms. She has experience with numerous types of modeling procedures, including Markov and other stochastic models, simulation, regression, linear and nonlinear programming, and various types of sensitivity analysis. Dr. Brogan has developed models and analyses in the areas of HIV, hepatitis C, influenza, mental health, women’s health, diabetic nephropathy, oncology, osteoporosis, chronic pain, age-related macular degeneration, bone healing, hospital-acquired infection, financial portfolio optimization, and vehicle routing. Her research has been presented at various professional conferences and published in peer-reviewed journals.

Susan Hogue PharmD, MPH

Susan Hogue is the Head of Value Insight and Access Strategy within the Health Economics division at RTI Health Solutions (RTI-HS).
She holds a BS in Pharmacy from the University of North Carolina at Chapel Hill, a PharmD from the University of Kentucky and an MPH in Health Policy from University of North Carolina at Chapel Hill. Dr Hogue is an
adjunct assistant professor at the Gillings School of Global Public Health at the University of North Carolina at Chapel Hill. She has been at RTI-HS for over 6 years and has more than 18 years of industry experience,
including leadership roles in global health outcomes and market access research at multinational pharmaceutical companies. In her RTI HS role, Dr Hogue leads a team of specialists responsible for providing clients with
effective tailored solutions to support market access for medicines, diagnostics, and devices. Her considerable experience encompasses all aspects of outcomes research and market access
evidence generation and implementation, including health economic and outcomes strategy development, payer value proposition development and communication, market access strategy development, payer research,
endpoint determination in clinical trial design, and value dossier and market access toolkit development. Her research has been presented at various professional conferences and published in peer-reviewed journals.